Accounts Receivable Has a Balance of $34,000,and the Allowance for Bad

question 125

Multiple Choice

Accounts Receivable has a balance of $34,000,and the Allowance for Bad Debts has a credit balance of $3,400.The allowance method is used.What is the net realizable value of Accounts Receivable before and after a $2,300 account receivable is written off?

• A)$30,600;$30,600
• B)$28,300;$28,300
• C)$30,600;$28,300
• D)$28,300;$32,900

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Definitions:

Total Dollars

The aggregate or total amount of money without adjusting for factors such as inflation or purchasing power.

Optimal Factor Mix

The most efficient combination of resources and inputs a firm uses to produce goods or services at the lowest cost.

Resource Markets

Markets where productive inputs, such as labor, natural resources, and capital, are bought and sold.

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The levels of output or efficiency achieved from a set amount of inputs in production or work processes.